Economic Downturn and The Sequester Has Not Even Kicked In Yet

[CarlV]

Originally Posted by icenine

I think it is still pretty difficult to get financing, or much harder than it was during the "boom" that led to all this mess. In California sales have come back but many would be buyers are getting crowded out by wealthy investors who are gobbling up homes to rent to those they screwed over during the boom.

In other words all those foreclosed homes will go to the banks to be rented out....

Yep, same thing all over again, and again, until we actually fix it. I bet the elites really drool over that idea of privatizing SS so they can crash the market and grab that money too.

And yep, China has been buying a great deal of real estate down southern Ca. and now bringing their Wally World dollars up here too.

Take a look at this “lovely, bright home in the heart of the prestigious and serene Sea Cliff area.” It had not one, but two buyers, both located in China, bidding on it without seeing it, said listing agent Nina Hatvany of Pacific Union International. Both offered all cash well above the $2.8 million asking price. One of them won the house for $3.1 million without ever coming to see it in person.
http://blog.sfgate.com/ontheblock/20...-sight-unseen/

Carl

[barbara]

Well I don't know about the housing market, and I'm not too smart about all the economic reasons behind the sequestration, but I do know that today at work I notified agencies providing free services to senior citizens that their budget is getting cut by 5%.
In my little world, this sequestration stuff sucks.

[Dondilion]

Originally Posted by icenine

I think it is still pretty difficult to get financing, or much harder than it was during the "boom" that led to all this mess. In California sales have come back but many would be buyers are getting crowded out by wealthy investors who are gobbling up homes to rent to those they screwed over during the boom.

In other words all those foreclosed homes will go to the banks to be rented out....

A relative who lives in Florida has told me that is what is happening down there.

[mpholland]

What is all this talk about financing being hard to get? I just refinanced to 3.75% and had no issues whatever. I would have no problem getting pre-qualified for a new loan either except I don't want to sell the one I'm in until values go up just a hair more.

[BlueStreak]

Marc, I think the difference is that we have good credit. I have people practically begging me to acquire more credit cards, take out loans or a second mortgage. I had my taxes done last week and mentioned it to my accountant. He said, "Oh, yeah. Those people would do anything for you."

It's the people with garbage credit that the Prez is trying to get loans for under the premise that their credit was damaged by the general economy, layoffs and such and it was nothing foolish that they did personally. In many cases that may be true. But, is the government going to separate those cases from the idiots who accrue debt never intending to repay?

I doubt it.

Dave

[icenine]

http://losangeles.cbslocal.com/2013/...-foreign-cash/


At 3.75 I hope you got a 15 year mortgage.....

My attitude is not to sell my house someday.....
I think I will try to pass it on to my daughter....

the way things are going homes may have to be passed down generation to generation....

pessimistic I know but....
the future is unwritten

[BlueStreak]

Originally Posted by icenine

http://losangeles.cbslocal.com/2013/...-foreign-cash/


At 3.75 I hope you got a 15 year mortgage.....

My attitude is not to sell my house someday.....
I think I will try to pass it on to my daughter....

the way things are going homes may have to be passed down generation to generation....

pessimistic I know but....
the future is unwritten

I think you're onto something Robbin. A few years back there were some talking heads on CNN going on about America becoming a "nation of renters".

Wouldn't surprise me at all if that isn't the plan. Strip us of our voice in the workplace, discourage people from voting, eliminate pensions, denounce SS and Medicare as "So(c)ialist handouts" with the intent to privatize and loot them, then use economic pressure to force us out of our homes and rent them back to us.

But, on the bright side, maybe the pr**ks will let us keep our guns so we can shoot at the stormtroopers when they come to take things from us?

Dave

[icenine]

Originally Posted by BlueStreak

I think you're onto something Robbin. A few years back there were some talking heads on CNN going on about America becoming a "nation of renters".

Wouldn't surprise me at all if that isn't the plan. Strip us of our voice in the workplace, discourage people from voting, eliminate pensions, denounce SS and Medicare as "So(c)ialist handouts" with the intent to privatize and loot them, then use economic pressure to force us out of our homes and rent them back to us.

But, on the bright side, maybe the pr**ks will let us keep our guns so we can shoot at the stormtroopers when they come to take things from us?

Dave

My wife is from Philippines as I have mentioned many times. Over there you just live where ever they will take you in or stay in the house you were born until you die. Not in all cases but the majority. So pretty soon the house gets really crowded with the spouses and offspring of all the homeowner's children.
There must be 20 people living in the small duplex my wife grew up in. All the families and kids of her sisters and brothers and nieces and nephews.

If you think about it in the new economy not paying rent may just let you survive....gosh what a terrible thing to contemplate...having to inherent a paid off home just to keep a sort of middle class existence going. But I can see it. Homes to flip or sell off as the kids buy their own homes may be a trend that will not continue like we knew it in the last decades.

[icenine]

Yeah I guess the AR-15s will keep our minds off the down side of the new (i hope I am really wrong) economy of renting.

[ebacon]

The rest of the world rents or owns the same home for generations. That's the right way to do it. We ruin our cities by continuously building and moving outward, leaving the middle to die out and needing to be on welfare.

Go on Google maps and look at cities around the world with populations equal to yours. You will see that all of them have smaller footprints.